Cross-border e-commerce potential remains largely untapped

Cross-border e-commerce potential remains largely untapped

Despite the domestic e-commerce market reaching an estimated value of $31 billion in 2025, placing Việt Nam among the world’s top 10 and top three in ASEAN, total import-export turnover via e-commerce stood at just $4.45 billion.

A woman in Ninh Bình Province is livestreaming to sell local products. — VNA/VNS Photo Nguyễn Lành

Việt Nam’s cross-border e-commerce sector is expanding rapidly but still represents a small fraction of the country’s total trade, highlighting untapped potential for export growth, experts say.

Despite the domestic e-commerce market reaching an estimated US$31 billion in 2025, placing Việt Nam among the world’s top 10 and top three in ASEAN, total import-export turnover via e-commerce stood at just $4.45 billion.

The figure remains modest compared with the country’s overall trade turnover of about $930 billion, leaving ample room to boost e-commerce exports, Trần Thanh Hải, deputy director of the Import-Export Department under the Ministry of Industry and Trade, said at a conference on e-commerce export on Tuesday.

According to Lê Hoàng Oanh, director of the ministry’s Vietnam E-commerce and Digital Economy Agency, cross-border e-commerce is emerging as a transformative export model that expands global market access, enables small firms to reach international customers, optimises costs from logistics to advertising and unlocks substantial growth potential.

“While traditional exports limit businesses to a certain customer base, global e-commerce allows firms to reach billions of consumers,” Oanh said, adding that cross-border e-commerce is being identified as a strategic export channel.

The E-commerce Law, set to take effect in July 2026, together with the national e-commerce development master plan for 2026-30, is expected to provide a comprehensive legal foundation for cross-border e-commerce to flourish, Oanh said.

She added that the new policy framework aims to increase transparency, support businesses in expanding into international markets and promote development of digital infrastructure, logistics and payment systems.

A report by Access Partnership – The E-Commerce Export: A New Growth Driver for Vietnam’s Furniture and Fashion Exports – forecasts that e-commerce exports in the furniture sector will grow by about 20 per cent annually between 2024 and 2029, while the fashion segment is projected to expand by roughly 26 per cent a year – two to five times faster than traditional export channels.

Access Partnership’s survey of 300 macro-, small- and medium-sized enterprises (MSMEs) found that reliance on e-commerce is rising, with 97 per cent of businesses identifying it as essential for future growth, 96 per cent saying it enhances international competitiveness, and 98 per cent reporting positive impacts on sales across both online and offline channels.

The US, China and the UK remain key export markets, with 82 per cent of respondents identifying the US as the most promising market.

Business-to-consumer (B2C) e-commerce exports are growing faster than Việt Nam’s overall exports, particularly in sectors where the country has strengths such as furniture and fashion, said Sam Charlton, director at Access Partnership.

Address challenges

A woman in Ninh Bình Province is livestreaming to sell local products. — VNA/VNS Photo Nguyễn Lành

However, challenges remain, with high cross-border logistics costs the biggest barrier, along with strict standards and regulations in export markets, the report said.

Other constraints include a shortage of skilled labour, limited digital capabilities, reliance on foreign platforms and weak brand development.

About 95 per cent of surveyed MSMEs called for a long-term strategy to support e-commerce exports, including simpler procedures, better coordination, improved logistics and more training.

Trần Thanh Hải said exports remain concentrated in key markets such as China, the US and the EU, and rely heavily on global platforms like Alibaba and Amazon.

He noted that most products are still contract-manufactured with low added value, and urged firms to improve product quality and build brands, while highlighting the need to develop logistics hubs in nearby markets such as China, Cambodia, Laos and Myanmar to reduce costs and boost competitiveness.

Stressing that cross-border e-commerce is becoming a long-term strategic direction, Lê Hoàng Oanh said regulators are developing a legal framework to support sustainable growth, including policies on customs, taxation and consumer protection aligned with international standards.

The Ministry of Industry and Trade is also working to improve regulations to create a more transparent, internationally aligned business environment.

Oanh urged businesses to comply with global standards, invest in certifications and strengthen digital capabilities to boost e-commerce exports, while leveraging technologies such as big data and artificial intelligence and expanding their presence on platforms like Amazon, Shopee, TikTok Shop and Lazada. 

Bizhub